Revenue Limit Exemption

Charlie SchneiderCESA 10

Facilities Management Director

Ask yourself…

• Are you levying to your District’s maximum?

• Do you have capital improvement projects that you have delayed for budgetary reasons?Outdated Controls

Inefficient Lighting Systems

Expensive Operating Costs

Revenue Limit Exemption for Energy Conservation Purposes

•  Allows a district to increase its revenue limit by the amount spent in that school year on energy efficiency measures, and renewable energy products, that result in the avoidance of, or reduction in, energy costs.

Revenue Limit Exemption for Energy Conservation

Purposes• 2009 Wisconsin Act 28 9-11 biennial

budget– Levy during year money is spent

• 2011 Wisconsin Act 32– Must be governed by a performance contract– May bond as long as 20 years

• 2013 Wisconsin Act 20– If district issues bonds or obtains a state trust

fund loan the energy savings must be used to retire the bond, note or state trust fund loan

Key Statutes & Rules

• 66.0133– Governs the use of performance contracts

in public building

• 121.91– Governs how schools in Wisconsin

use the revenue limit exemption • Often overlooked by some providers

• PI15– Provides rules for how schools and the DPI

use the exemption

Key Statutes & Rules

• Board must pass a resolution to utilize the exemption in the current fiscal year (and prior/in conjunction with setting the current year’s levy), so the resolution must be passed between July 1st & November 1st of the year the funds will be used.

• A resolution must be passed in each year in which the exemption is claimed, even if borrowing (so it is possible that the board will have to approve a resolution for 20 years).

• There are reporting requirements when the exemption is used – reporting to the community (at Annual Meeting) and at the end of the year as to the project’s savings (data also must eventually be entered into the DPI / SFS Team’s reporting portal)

Using the Revenue Limit Exemption as a tool

• Complete those deferred maintenance projects without a referendum

• Follow the steps as laid out by the DPI

• Many districts able to keep taxes stable or only small increases

Real Life Example

• 1,600 students• Three buildings• No room under Revenue Limit

Real Life Example

• Nearly 3.5 million dollars in deferred maintenance projects– Lighting– Pool heating– Boilers– Roofing and added

insulation

• Bonded 3.5 million over 10 years

Real Life Example

• 2013 -2014 Mill Rate $10.09• 2012-2013 Mill Rate $ 10.00

Another Real Life Example

• 1,271 Students• 3 Buildings• No room under Revenue Limit

Another Real Life Example

• Over $5 million in deferred maintenance projects– Lighting– Security* (Create Vestibule for controlled entry)– HVAC– Safety* (Exterior Doors)

• Completed $450,000 in first year• Working on bonding remaining $4,550,000

over 10 years*Also has energy savings associated

Another Real Life Example

• 2013-2014 Mill Rate $11.28• 2012-2013 Mill Rate $10.90

School energy and maintenance costs are the greatest expenses for schools after personnel costs.*

As school budgets dwindle and energy costs continue to rise, fewer resources are dedicated to school operations and maintenance.

As a result, the health and performance of our school buildings - and our students - suffers

Ample research evidence strongly indicates that poor air quality results in poor performance by students and workers.

The US EnvironmentalProtection Agency estimatesthat more than 10 million daysof schooling are lost each year by students because of asthma attacks (EPA, 2000).

A number of studies have demonstrated a positive correlation between appropriate lighting and higher student achievement. Specifically:•Good lighting quality and proper foot-candles have been found to be positively related to increases in student achievement and performance.•Conversely, in schools where the lighting is less than the minimum acceptable level and poor quality, students did not perform as well as studentsin properly illuminated school buildings.

Source: Earthman, 2004

The physical condition of our school facilities affects the performance, comfort and stress levels of students and teachersalike.

A wide body of researchilluminates the relationshipsbetween the physical and human performance of our schools, including the links between:

• indoor air quality and rates of absenteeism and asthma• lighting quality and student concentration• classroom acoustics and student attention• access to physical activity and healthy cognitive development• the design and condition of facilities and academic achievement• the quality of school buildings and long-term staff and teacher retention

Thank you!

Any Questions?

Charlie SchneiderCESA 10

charlie@cesa10.k12.wi.us715-720-2176